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Premarket report for the S&P futures

Futures have now rolled to the September expiration although volume still remains strong in the prior period contracts. The profile chart below reflects the current expiration so does the table with key-levels. Not much of a gap or departure from value when you factor overnight price action which has remained net-long. We are about 7 points above yesterday’s settlement so there are no gap rules to worry about today nor is there any market moving events in the Economic Calendar of events for today. The USD has remained strong through the overnight session as currency futures rolled overnight to the September expiration to align with equity futures roll. We could see some profit taking in the early part of the trading session today. Apart from that it would not be too far-fetched a thinking that we will more than likely hold initial support which now sits at 4219.50. Participation is expected to shift in a gradual fashion over into the September contract as the day progresses.

Possible Scenarios

• The Fibonacci support [4220.00] using the ON halfback makes for an excellent long trade entry but that will need some patience. My initial trade would be a long from somewhere between 4220~4223.50 and being a Friday, I would limit my lots today to almost ½ of my normal sizes.
• Only above 4245 would make much sense for taking short trades since the ON halfback has a profit target just above there at 4245.50.
• The grind higher prevailed yesterday but maybe a tad bit different today in how prices gyrate through the session. Expect volatility to grab hold as we see position traders rolling into the front period contracts.

Key Levels to factor for the intraday price movement.

TPO Chart

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